Nestle Waters North America has invested US$15.6M in a small US beverage company called Sweet Leaf Tea Co & will have an option to buy the entire company in the next few years. The investment in ready-to-drink tea maker Sweet Leaf comes at a time when growth of bottled water has slowed sharply in the US amid the recession & a broad slump in spending. More consumers have turned to tap water in the downturn, hurting sales of carbonated soft drinks, bottled water & other beverages. The deal is intended to convert the Texas-based company Sweet Leaf from a small player to a much larger mainstream brand. Bottled in glass, with a traditional label, Sweet Leaf's bottled drinks are currently available in speciality food stores, as well as nationwide throughout other outlets such as Safeway. Nestle believes consumers are looking for "lighter" beverages, such as these.
